Blockchain In Retail Market Size, Share & Trends Estimation Report By Component (Platform/ Solutions, Services),By Type (Public Blockchain, Private Blockchain ),By Application (Supply Chain Management, Food Safety Management), By Region, And Segment Forecasts, 2023 - 2030
The Global Blockchain In Retail Market Size Was Valued At USD 240.45 Million In 2022 And Is Projected To Reach USD 30,641.76 Million By 2030, Growing At A CAGR Of 91.67% From 2023 To 2030.
Blockchain in Retail Market Overview
It is clear that blockchain technology is here to stay, and it is already changing every industry. In retail, technology is helping a lot with everything from managing the supply chain to making customer loyalty programmes better. As more retail sales happen online, stores are finding it hard to change how they deliver products to match how customers search for and buy a product, which is always changing. For example, blockchain technology helps retailers store information about their suppliers better, makes payments and contracts easier, and even makes it harder to make fake goods by making it easier to tell if a product is real or not.
Blockchain in retail solutions gives customers services like fast service, being able to track items, getting information in real time, and knowing when items will be delivered. Technology also makes sure that products are real, safe, of good quality, and reliable, and it lets supply chain partners know where their products are at all times.
The demand for solutions in retail is likely to be driven by end-users like logistics and supply chain that want to use blockchain more. In the logistics industry, some of the main things that are expected to create market opportunities for key players are faster ways to do business and more transparent ways to do business. Also, businesses on the market are trying to grow their business units all over the world. As an example,
- Nestle Group joined forces with OpenSC in July 2019. OpenSC is a platform for distributed ledger technology. With this partnership, Nestlé wants to create a distributed ledger technology system that is different from the IBM food trust blockchain in which Nestlé is already involved.
One of the most important market trends is the use of distributed ledgers in the supply chain and inventory management. The technology helps improve visibility and compliance, cut down on paperwork and administrative costs, and makes it easier to track where things come from in the supply chain. Also, using distributed ledger technology in both the supply chain and inventory management will make sure that corporate standards are met and reduce the risk of bad PR from supply chain mistakes.
The inventory solution for supply chain management lets retailers, distribution centres, suppliers, and other partners connect with each other by keeping a record of every transaction. Also, the technology makes end-to-end tracking in the supply chain more accurate and clear. Also, key players are working together to improve their presence in the market. As an example,
- In January 2019, IBM Corporation worked with Ford Motor Company, RCS Global, LG Chem Ltd, and Huayou Cobalt Corporation Ltd to implement solutions in the supply chain. This would let companies verify and track a number of minerals used in consumer products.
Improved Transaction Transparency to Aid Market Growth
With encrypted distributed ledgers technology, the blockchain in retail makes it possible to process payments quickly, safely, and at low cost. This lets the transactions be checked in real time without the need for clearing houses or banks to be in the middle. The retail industry has seen a huge rise in digital payments, which has helped the demand for distributed ledger technology. Also, putting technology into the supply chain will make it more efficient, easier to track, safer, and more open. For example, in December 2020, New Generation Computing Inc. and Loyalty Inc. launched a supply chain traceability solution that lets retailers and owners document the chain of custody from origin to importer of record. In the same way, Accenture released procurement solution in January 2020. The solution brings together the teams of suppliers and buyers on the same platform so they can share data easily and safely.
Customer and Identity Management in Retail to Fuel Market
Distributed ledger technology is now easier for customers to use. The distributed ledger technology helps automate, find, and manage problems that could affect their daily workflows, such as payroll systems and transactions for financial services. This technology is used for staff, like keeping track of employees' personal information, getting them started, checking their employment history, and doing background checks. It also tells them about their customers and employees in real time. Retail stores use technology to keep track of their customers and employees in real time. For example,
- In October 2018, Oracle Corporation created the Oracle blockchain application cloud to help customers make their businesses more flexible and increase trust in transactions. The new suite uses SaaS to make the whole supply chain more open and easy to track.
Also, one of the biggest things pushing the market forward is the use of blockchain technology in different industries to manage customers and identities. Blockchain in customer management helps industries like logistics, manufacturing, banking, and government build better relationships with their customers by giving them more security, better transparency, and more control over user privacy..
- In August 2019, IBM and Maersk worked together to make TradeLens, a blockchain-based shipping solution. The goal of the solution is to make global trade safer and more efficient by using blockchain technology in the supply chain.
Lack of Technical Understanding and Blockchain Technology to Hinder Market Growth
Cyber-attacks and cyber-threats are on the rise because many industries are digitising quickly. Risk factors are making it hard for businesses all over the world to find skilled workers. This has also made people slow to adopt new technologies, which is expected to slow the growth of the market.
Also, the use of distributed ledger technology has grown in many different fields, such as manufacturing and healthcare. Also, this has made people all over the world want more skilled workers. It is expected that the growth of the market will be limited by a lack of skilled workers and distributed ledgers technology.
By Component Analysis
Platform/Solutions to Dominate Market Owning to Rising Demand
During the time frame of the forecast, the platform/solutions segment is expected to be the market leader. The size of the market is being driven by the growing demand for solutions in industries like retail and others. IBM, Oracle, and Accenture all put money into making more advanced platforms and solutions. Also, the companies are putting a lot of effort into integrating solutions with AI, IoT, and other technologies so they can offer interactive experiences in real time.
During the next few years, the services are likely to grow quickly because more people want safer ways to update data and keep track of what they do.
By Type Analysis
Increasing Adoption of Private Blockchain to Propel Market Growth
During the time frame of the forecast, the private distributed ledger technology is expected to have the largest share of the blockchain retail market. Private solutions are being used more and more in the retail industry. The growth of the market is also helped by the fact that private blockchain has low transaction fees.
Due to their growing use in retail, public blockchain is likely to gain popularity. The blockchain in retail industry trends are likely to be driven by the fact that more and more public organisations are using solutions to design platforms and solutions that allow for a clear and real-time view.
During the forecast period, consortium is also expected to grow at a very fast rate. The industry is growing because more retail projects are being built in developed countries like the U.S., Germany, and others.
By Application Analysis
Rising Popularity of Blockchain Technology among Supply Chain to Gain Traction during Forecast Period
By application, the market is divided into supply chain management, food safety management, customer data management, identity management, compliance management, billing transaction processing, and others. The growth of the market is expected to be driven by supply chain management over the next few years. The growth of this segment is likely to be driven by the growing use of technology that makes it easy for organisations to share data and the growing number of security concerns. Supply chain management solutions are used to organise, get, and use data about customers to learn more about end users. Also, as logistics and supply chain management improve, key vendors will have better market opportunities in the future..
In 2020, North America had the largest market share. To keep its place on the global market, the region has put a lot of money into blockchain in retail services and technology. Advanced technologies like smart payments, contracts, and others have become popular because of the use of technology. Tech giants like IBM Corporation, Oracle Corporation, and Accenture PLC were some of the first retailers to use technology, and they are far ahead of the curve when it comes to putting it to use. IDC says that in 2021, the U.S. spent USD 2.6 million on technology, which was more than any other country.
Companies in Europe are getting more and more interested in blockchain technology because the region is expected to grow quickly. Some of the things that are driving the growth of the region are investments by key players in the market, government projects, and more money going into research and development.
China, South Korea, Japan, and India are driving the growth of the Asia-Pacific market. The countries in the area take a lot of steps to adopt new technologies and put distributed ledger technologies to use in their retail and supply chains. For example, in December 2020, the government of Singapore announced a USD 8.90 million programme to help people use blockchain apps. Also, these government-led investments and funding are meant to make Asia-Pacific the most important market in the world.
In places like Latin America, the Middle East, and Africa, the rise of digital technologies and government programmes help people get used to new technologies. For example, the International Finance Company put $3 million into Twiga Foods in July 2018. Twiga Foods is a B2B logistics company that helps small farmers in East Africa connect with shop owners.
|Units||Value (USD Billion)
|Growth Rate||CAGR of 91.67% from 2023 to 2030|
|Reasons to Purchase this Report||
- In July 2019 - Together with IBM and shopping centre operator Scentre Group, a group of Australian financial services companies launched a pilot that puts retail lease bank guarantees on a private blockchain.
- In July 2019 - Nestle worked with OpenSC, a blockchain platform, to build the distributed ledger system, which will be different from Nestle's ongoing work with IBM Food Trust blockchain.
- In June 2019 - Dixy, which sells food and is the third largest food retailer in Russia, used blockchain technology to improve its corporate finance system. The Moscow-based retailer has used blockchain to help suppliers and factoring firms work together. Factoring firms are third parties that buy invoices from businesses at a discount to help those businesses get money.
This portion of the study on the Blockchain in Retail Market gives detailed data on the segments at the country and regional level, thereby aiding the strategist in determining the target demographics for the relevant product or service and the impending opportunities.
- Platform/ Solutions
- Public Blockchain
- Private Blockchain
- Consortium Blockchain
- Supply Chain Management
- Food Safety Management
- Customer Data Management
- Identity Management
- Compliance Management
- Billing Transaction Processing
- IBM Corporation (New York, U.S.)
- Oracle Corporation (Texas, U.S.)
- Accenture Plc (Dublin, Ireland)
- Tata Consultancy Services (Maharashtra, India)
- Amazon Web Services, Inc. (Washington, U.S.)
- Cisco Systems Inc. (California, U.S.)
- Auxesis Services and Technologies (P) Ltd. (Mumbai, India)
- Guardtime (Lausanne, Switzerland)
- Sofocle Technologies (Uttar Pradesh, India)
- Capgemini SE (Paris, France)